Late on Friday and at the beginning of Saturday, Bitcoin had grown with a few extra staggering steps of his trademark tricks. We look at the action and what it can mean to go to the weekly graduation.
Bitcoin (BTC) traded around $ 200 a week. Lows of $ 3,700 were set on Monday. Highs of $ 3,900 were recorded on Wednesday. Since then, the bulls have passed the $ 3,800 mark and have generally been in control of price movements.
4 hours chart
Late on Friday, the bear hit the price again just over the middle of the week and found a low of £ 3,760 (-3.5 percent), which was bought back and pushed the price to new weekly highs. This type of unusual price movement tends to occur before a more definitive movement.
The four-hour MACD is currently bullish crossed and tends above zero, which is related to the stochastic RSI – which also becomes bullish. In combination with the general uptrend of the week, the par value evidence favors the bulls going into Saturday.
The weekly chart shows that volatility at these levels can be explained somewhat by the long-term resistance being close to the current price. This price action just below the 100 and 50 WMA intersection, which is supported by the 200-WMA, is very similar to that of 2015.
This lasted several months until the problem was solved. This eventually led to a test of the diminishing 50WMA, which is currently falling from $ 6,000. It took another 10 weeks to test the 50 WMA after the cross under similar circumstances in 2015, which would take us to the end of April and somewhere in the $ 5,000 range. This test in 2015 has caused the 200 WMA to decline. Should this happen again, we would have drawn clear lines.
The bearish case is that Bitcoin has not broken that resistance for 12 months. What would lead us to believe that it could be different this time?
Bull's goal is $ 5K
In a TradingView post, I expressed the idea that a $ 5k bitcoin price might be possible and that the main reasons are that there are so many bullish indicators that underlie that thought, namely the MAC-D. CMF, Fibonacci level and the fact that we have reached higher lows in a few months.
Only time will tell if this prediction will work, and it's a prediction against the bottom line of a 14-month bear market. Therefore, care should be taken. A low above $ 3,400 and a lower low / low in the market structure would certainly mean that the bears are still in power after a brief period of hibernation.
Trade Bitcoin, Litecoin and other cryptocurrencies on the online Bitcoin Forex broker platform evolve.markets.
To get updates for the author, you can follow Twitter (@filbfilb) and TradingView.
All charts courtesy of TradingView.
The views and opinions of the author should not be misunderstood as financial advice. The author holds Bitcoin for disclosure at the time of writing.
Post-Bitcoin Price Analysis: Not as bearish as you think, first appeared on Bitcoinist.com.
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